PR Newswire | Apr 21, 2021 04:16PM EDT

04/21 15:15 CDT

Umpqua Reports First Quarter 2021 ResultsFirst quarter 2021 Results- Net income of $107.7 million, or $0.49 per common share- Loan balances increased $381.5 million or 1.8%- Deposit balances increased $1.3 billion or 5.1%- Non-interest expenses decreased by $23.7 million or 11.2% PORTLAND, Ore., April 21, 2021

PORTLAND, Ore., April 21, 2021 /PRNewswire/ --

$0.49 $108 16.43% 15.9%

Net earnings per dilutedNet income ($ in millions)Return on average tangibleTotal risk-based capital ratiocommon share common equity ("ROATCE") (estimated)

CEO Commentary"Through strategic growth, expense management, and capital allocation, we're committed to improving value for our shareholders over time. Umpqua's reported earnings of $0.49 per share last quarter reflect the relevance of the company's unique value proposition and customer acquisition efforts, and we're optimistic about future loan growth as our markets reopen. We're focused on continuing to execute on our talent acquisition and other growth priorities, including key Human Digital initiatives that are an important point of differentiation and customer-engagement across digital channels."-Cort O'Haver, President and CEO of Umpqua Holdings Corporation

FIRST QUARTER HIGHLIGHTS



? Net interest income decreased by $13.5 million on a quarter to quarter basis primarily due to $9.3 million of Net Interest lower Paycheck Protection Program ("PPP") fees recorded in theIncome and current period. NIM ? Net interest margin was 3.18%, down 17 basis point due to 11 basis points of lower PPP fees recorded in the current period.



? Non-interest income decreased by $15.2 million due to Non-Interest lower net mortgage banking revenue of $14.0 million. Income and Expense ? Non-interest expense decreased by $23.7 million primarily due to lower salaries & benefits, occupancy & equipment, and other expenses.



? Net charge-offs decreased by two basis points to 0.33% of average loans and leases (annualized). Credit Quality? Provision for credit losses was zero compared to $0.03 million in the prior period. ? Non-performing assets to total assets decreased five basis points to 0.19% from 0.24%.



? Estimated total risk-based capital ratio of 15.9% and estimated Tier 1 Risk Based Capital ratio of 12.6%. Capital ? Paid a quarterly cash dividend of $0.21 per common share on February 26, 2021 to shareholders of record as of February 16, 2021.



? $2.0 million loss on the fair value change due to model inputs of the mortgage servicing rights ("MSR") asset. Notable items ? $11.8 million gain related to the fair value of the debt capital market swap derivatives.

1Q21 KEY FINANCIAL DATA



PERFORMANCE METRICS 1Q21 4Q20 1Q20

Return on average assets 1.49 % 2.04 %(25.82) %

Return on average tangible common equity16.43% 23.07 %(301.30)%

Net interest margin 3.18 % 3.35 %3.41 %

Efficiency ratio - consolidated 56.74% 58.82 %756.29 %

Loan to deposit ratio 85.61% 88.45 %93.62 %



INCOME STATEMENT 1Q21 4Q20 1Q20 ($ in 000s, excl. per share data)

Net interest income $221,431$234,907$218,535

Provision for credit losses $- $29 $118,085

Non-interest income $108,800$123,960$40,645

Non-interest expense $187,592$211,312$1,962,658

Earnings per common share - diluted $0.49 $0.68 ($8.41)

Dividends paid per share $0.21 $0.21 $0.21



BALANCE SHEET 1Q21 4Q20 1Q20

Total assets $30.0B $29.2 B$27.5 B

Loans and leases $22.2B $21.8 B$21.3 B

Total deposits $25.9B $24.6 B$22.7 B

Tangible book value per share^1 $12.10 $12.21 $11.30

Book value per common shares $12.16 $12.28 $11.39

^1 "Non-GAAP" financial measure. A reconciliation to the comparable GAAPmeasurement is provided on page 4.

Segment DisclosuresSegment disclosures have been included on pages 15 and 16 of this press release to provide additional detail on the Company's two operating segments: Core Banking and Mortgage Banking.

The Core Banking segment includes all lines of business, except Mortgage Banking, including wholesale, retail, wealth management, as well as the operations, technology, and administrative functions of the Bank and Holding Company. The Mortgage Banking segment includes the revenue earned from the production and sale of residential real estate loans, the servicing income from our serviced loan portfolio, the quarterly changes to the mortgage servicing rights (MSR) asset, and the specific expenses that are related to mortgage banking activities including variable commission expenses. Revenue and related expenses related to residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are an anchor product for our consumer channels and are originated through a variety of channels throughout the Company.

Balance SheetTotal consolidated assets were $30.0 billion as of March 31, 2021, compared to $29.2 billion as of December 31, 2020 and $27.5 billion as of March 31, 2020. Including secured off-balance sheet lines of credit, total available liquidity was $14.2 billion as of March 31, 2021, representing 47% of total assets and 55% of total deposits.

Gross loans and leases were $22.2 billion as of March 31, 2021, an increase of $381.5 million relative to December 31, 2020. The increase in gross loans and leases is primarily due to an increase of commercial real estate balances during the quarter of $92.2 million and an increase in net PPP loan balances of $297.6 million. The change in net PPP loan balances during the quarter was the result of an increase in round two PPP net loan balances of $659.2 million, offset by a decrease in PPP round one net loan balances of $361.6 million. Please refer to the additional loan tables in the Q1 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio and specific industry concentrations impacted by COVID-19.

Total deposits were $25.9 billion as of March 31, 2021, an increase of $1.3 billion from $24.6 billion as of December 31, 2020. This increase was primarily attributable to growth in non-interest bearing demand deposits of $867.7 million and growth in money market balances of $380.9 million, partially offset by a decline in time deposits of $373.6 million.

Net Interest IncomeNet interest income was $221.4 million for the first quarter of 2021, down $13.5 million from the prior quarter. The decrease was primarily driven by $9.3 million of lower PPP fees recognized in the quarter compared to the prior period.

The Company's net interest margin was 3.18% for the first quarter of 2021, down 17 basis points from 3.35% for the fourth quarter of 2020 primarily driven by an eleven basis points decrease resulting from lower PPP fees recognized in the quarter.

Credit QualityThe allowance for credit losses was $331.0 million, or 1.49% of loans and leases, as of March 31, 2021, which was down from $348.7 million, or 1.60% of loans and leases, as of December 31, 2020. The provision for credit losses decreased by $0.03 million from the prior quarter level primarily due to offsetting changes in loan portfolio mix and improvement in economic forecasts used in the credit models.

Net charge-offs as a percentage of average loans and leases decreased by two basis points to 0.33% of average loans and leases (annualized) as of December 31, 2020. The decrease in net charge-offs for the quarter was primarily due to continued stable credit performance of the loan portfolio. As of March 31, 2021, non-performing assets were 0.19% of total assets, compared to 0.24% as of December 31, 2020 and 0.32% as of March 31, 2020.

Current Expected Credit Loss (CECL)On January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments -Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments("CECL"). In applying CECL, we use credit models that factor in economic forecasts to project life of loan performance. At the beginning of the COVID-19 pandemic, economic forecasts projected significant, negative COVID-19 related impacts to the economy; therefore we recorded significant provisions for credit losses in the first and second quarters of 2020. As those future economic forecasts have stabilized as well as incorporating loan mix changes, we recorded a recapture of $0.34 million of the allowance for credit losses in the third quarter of 2020, a $0.03 million provision for credit losses in the fourth of 2020, and no provision for credit losses in the current period.

Non-interest IncomeNon-interest income was $108.8 million for the first quarter of 2021, down $15.2 million from the prior quarter driven primarily by a decrease in net mortgage banking revenue of $14.0 million.

Revenue from the origination and sale of residential mortgages was $62.5 million for the first quarter of 2021, a decrease of $20.9 million from the prior quarter. This decrease reflects a sequential quarter decrease of $133.9 million or 8% in for-sale mortgage origination volume and a decrease of 89 basis points in the home lending gain on sale margin to 3.82% for the first quarter of 2021. Of the current quarter's mortgage production, 37% related to purchase activity, compared to 48% for the prior quarter and 43% for the same period of the prior year.

Non-interest ExpenseNon-interest expense was $187.6 million for the first quarter of 2021, down $23.7 million from the prior quarter level. This decrease was primarily due to a decrease in salaries and benefits expenses of $8.3 million, a decrease in occupancy and equipment expenses of $7.1 million, and decreases in other expenses of $7.7 million.

CapitalAs of March 31, 2021, the Company's tangible book value per common share1 was $12.10, compared to $12.21 in the prior quarter and $11.30 in the same period of the prior year. The decrease in tangible book value per share is attributable to increases in the fair value of trust preferred securities and a decrease in the unrealized gain of investment portfolio securities during the quarter.

The Company's estimated total risk-based capital ratio was 15.9% and its estimated Tier 1 common to risk weighted assets ratio was 12.6% as of March 31, 2021. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of March 31, 2021 are estimates, pending completion and filing of the Company's regulatory reports.

Non-GAAP Financial MeasuresIn addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

Management believes tangible common equity and the tangible common equity ratio are useful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs). The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.

The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).

(In thousands, except per share data) Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020

Total shareholders' equity $2,681,869 $2,704,577 $2,610,244 $2,538,339 $2,507,611

Subtract:

Goodwill 2,715 2,715 2,715 2,715 2,715

Other intangible assets, net 12,230 13,360 14,606 15,853 17,099

Tangible common shareholders' equity $2,666,924 $2,688,502 $2,592,923 $2,519,771 $2,487,797

Total assets $30,036,680 $29,235,175 $29,437,441 $29,645,248 $27,540,382

Subtract:

Goodwill 2,715 2,715 2,715 2,715 2,715

Other intangible assets, net 12,230 13,360 14,606 15,853 17,099

Tangible assets $30,021,735 $29,219,100 $29,420,120 $29,626,680 $27,520,568

Common shares outstanding at period end 220,491 220,226 220,222 220,219 220,175



Total shareholders' equity to total assets ratio8.93 %9.25 %8.87 %8.56 %9.11 %

Tangible common equity ratio 8.88 %9.20 %8.81 %8.51 %9.04 %

Book value per common share $12.16 $12.28 $11.85 $11.53 $11.39

Tangible book value per common share $12.10 $12.21 $11.77 $11.44 $11.30

About Umpqua Holdings CorporationUmpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit umpquabank.com.

Earnings Conference Call InformationThe Company will host its first quarter 2021 earnings conference call on April 22, 2021, at 10:00 a.m. PT (1:00 p.m. ET). During the call, the Company will provide an update on recent activities and discuss its first quarter 2021 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 7292532. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 7292532. The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at https://www.umpquabank.com/investor-relations/.

Forward-Looking StatementsThis press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives. Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality, deferral programs, and business operations, as well as its impact on general economic and financial market conditions; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that exceeds current consensus estimates; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; and changes in laws or regulations. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company's Board of Directors, and may be subject to regulatory approval or conditions.

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)

Quarter Ended % Change

Seq. Year (In thousands, except per share data) Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020 over Quarter Year

Interest income:

Loans and leases $ 221,141 $240,815 $229,457 $235,174 $245,993 (8) % (10) %

Interest and dividends on investments:

Taxable 13,112 11,951 10,168 9,015 16,605 10 % (21) %

Exempt from federal income tax 1,534 1,523 1,490 1,520 1,562 1 % (2) %

Dividends 598 659 710 568 678 (9) % (12) %

Temporary investments and interest bearing deposits624 531 474 403 3,331 18 % (81) %

Total interest income 237,009 255,479 242,299 246,680 268,169 (7) % (12) %

Interest expense:

Deposits 10,678 14,567 19,121 26,222 40,290 (27) % (73) %

Securities sold under agreement to 76 93 84 194 395 (18) % (81) %repurchase and federal funds purchased

Borrowings 1,772 2,765 3,271 3,839 4,046 (36) % (56) %

Junior subordinated debentures 3,052 3,147 3,249 3,922 4,903 (3) % (38) %

Total interest expense 15,578 20,572 25,725 34,177 49,634 (24) % (69) %

Net interest income 221,431 234,907 216,574 212,503 218,535 (6) % 1 %

Provision (recapture) for credit losses - 29 (338) 87,085 118,085 (100)% (100)%

Non-interest income:

Service charges on deposits 9,647 10,202 10,405 8,757 11,473 (5) % (16) %

Card-based fees 7,374 7,754 7,118 5,901 7,417 (5) % (1) %

Brokerage revenue 3,915 4,093 3,686 3,805 4,015 (4) % (2) %

Residential mortgage banking revenue, net 65,033 79,028 90,377 83,877 17,540 (18) % 271 %

Gain (loss) on sale of debt securities, net 4 - - 323 (133) nm nm

(Loss) gain on equity securities, net (706) (173) (112) 240 814 308 % (187)%

Gain on loan and lease sales, net 1,373 3,374 1,092 1,074 1,167 (59) % 18 %

BOLI income 2,071 2,067 2,087 2,116 2,129 0 % (3) %

Other income (expense) 20,089 17,615 17,271 9,387 (3,777) 14 % nm

Total non-interest income 108,800 123,960 131,924 115,480 40,645 (12) % 168 %

Non-interest expense:

Salaries and employee benefits 124,134 132,460 120,337 116,676 109,774 (6) % 13 %

Occupancy and equipment, net 34,635 41,758 36,720 36,171 37,001 (17) % (6) %

Intangible amortization 1,130 1,246 1,247 1,246 1,247 (9) % (9) %

FDIC assessments 2,599 3,014 2,989 3,971 2,542 (14) % 2 %

Goodwill impairment - - - - 1,784,936 0 % (100)%

Other expenses 25,094 32,834 28,914 23,846 27,158 (24) % (8) %

Total non-interest expense 187,592 211,312 190,207 181,910 1,962,658 (11) % (90) %

Income (loss) before provision for income taxes 142,639 147,526 158,629 58,988 (1,821,563) (3) % nm

Provision (benefit) for income taxes 34,902 (3,204) 33,758 6,062 30,384 nm 15 %

Net income (loss) $ 107,737 $150,730 $124,871 $52,926 $(1,851,947) (29) % nm



Weighted average basic shares outstanding 220,367 220,225 220,221 220,210 220,216 0 % 0 %

Weighted average diluted shares outstanding 220,891 220,663 220,418 220,320 220,216 0 % 0 %

Earnings (loss) per common share - basic $ 0.49 $0.68 $0.57 $0.24 $(8.41) (28) % nm

Earnings (loss) per common share - diluted $ 0.49 $0.68 $0.57 $0.24 $(8.41) (28) % nm



nm = not meaningful

Umpqua Holdings Corporation Consolidated Balance Sheets

(Unaudited)

% Change

Year Seq. (In thousands, except per share data) Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 over Quarter Year

Assets:

Cash and due from banks $379,361 $370,219 $370,595 $410,769 $406,426 2 %(7) %

Interest bearing cash and temporary investments 2,861,820 2,202,962 1,849,132 1,853,505 1,251,290 30 %129 %

Investment securities:

Equity and other, at fair value 82,771 83,077 82,769 81,958 80,797 0 %2 %

Available for sale, at fair value 3,167,825 2,932,558 2,898,700 2,865,690 2,890,475 8 %10 %

Held to maturity, at amortized cost 2,954 3,034 3,088 3,143 3,200 (3) %(8) %

Loans held for sale 376,481 766,225 683,960 605,399 481,541 (51) %(22) %

Loans and leases 22,160,860 21,779,367 22,426,473 22,671,455 21,251,478 2 %4 %

Allowance for credit losses on loans and leases (311,283) (328,401) (345,049) (356,745) (291,420) (5) %7 %

Net loans and leases 21,849,577 21,450,966 22,081,424 22,314,710 20,960,058 2 %4 %

Restricted equity securities 22,057 41,666 50,062 54,062 58,062 (47) %(62) %

Premises and equipment, net 176,571 178,050 185,104 192,041 195,390 (1) %(10) %

Operating lease right-of-use assets 100,643 104,937 107,321 111,487 115,485 (4) %(13) %

Goodwill 2,715 2,715 2,715 2,715 2,715 0 %0 %

Other intangible assets, net 12,230 13,360 14,606 15,853 17,099 (8) %(28) %

Residential mortgage servicing rights, at fair value100,413 92,907 93,248 96,356 94,346 8 %6 %

Bank owned life insurance 322,867 323,470 326,120 324,873 322,717 0 %0 %

Deferred tax asset, net 10,905 - - - - nm nm

Other assets 567,490 669,029 688,597 712,687 660,781 (15) %(14) %

Total assets $30,036,680 $29,235,175 $29,437,441 $29,645,248 $27,540,382 3 %9 %

Liabilities:

Deposits $25,886,833 $24,622,201 $24,669,783 $24,844,378 $22,699,375 5 %14 %

Securities sold under agreements to repurchase 420,402 375,384 388,028 398,414 346,245 12 %21 %

Borrowings 281,444 771,482 996,520 1,096,559 1,196,597 (64) %(76) %

Junior subordinated debentures, at fair value 281,580 255,217 247,045 232,936 195,521 10 %44 %

Junior subordinated debentures, at amortized cost 88,212 88,268 88,325 88,382 88,439 0 %0 %

Operating lease liabilities 109,014 113,593 115,790 119,885 123,962 (4) %(12) %

Deferred tax liability, net - 5,441 13,239 21,439 51,061 (100) %(100) %

Other liabilities 287,326 299,012 308,467 304,916 331,571 (4) %(13) %

Total liabilities 27,354,811 26,530,598 26,827,197 27,106,909 25,032,771 3 %9 %

Shareholders' equity:

Common stock 3,515,248 3,514,599 3,512,153 3,510,145 3,507,680 0 %0 %

Accumulated deficit (871,511) (932,767) (1,036,931) (1,115,414) (1,168,340) (7) %(25) %

Accumulated other comprehensive income 38,132 122,745 135,022 143,608 168,271 (69) %(77) %

Total shareholders' equity 2,681,869 2,704,577 2,610,244 2,538,339 2,507,611 (1) %7 %

Total liabilities and shareholders' equity $30,036,680 $29,235,175 $29,437,441 $29,645,248 $27,540,382 3 %9 %



Common shares outstanding at period end 220,491 220,226 220,222 220,219 220,175 0 %0 %

Book value per common share $12.16 $12.28 $11.85 $11.53 $11.39 (1) %7 %

Tangible book value per common share $12.10 $12.21 $11.77 $11.44 $11.30 (1) %7 %

Tangible equity - common $2,666,924 $2,688,502 $2,592,923 $2,519,771 $2,487,797 (1) %7 %

Tangible common equity to tangible assets 8.88 %9.20 %8.81 %8.51 %9.04 %(0.32) (0.16)

Umpqua Holdings Corporation

Loan and Lease Portfolio

(Unaudited)

Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 % Change

Seq. Year (Dollars in thousands) Amount Amount Amount Amount Amount Quarterover Year

Loans and leases:

Commercial real estate:

Non-owner occupied term, net $3,455,773 $3,505,802 $3,533,776 $3,589,484 $3,613,420 (1) % (4) %

Owner occupied term, net 2,358,169 2,333,945 2,411,098 2,459,954 2,472,187 1 % (5) %

Multifamily, net 3,421,320 3,349,196 3,389,034 3,466,829 3,464,217 2 % (1) %

Construction & development, net 876,297 828,478 757,462 662,703 667,975 6 % 31 %

Residential development, net 190,841 192,761 163,400 164,180 187,594 (1) % 2 %

Commercial:

Term, net^ (1) 4,350,763 4,024,467 4,246,229 4,265,092 2,317,573 8 % 88 %

Lines of credit & other, net 825,162 862,760 894,782 940,443 1,208,051 (4) % (32)%

Leases & equipment finance, net 1,420,977 1,456,630 1,496,650 1,522,369 1,492,762 (2) % (5) %

Residential:

Mortgage, net 3,958,644 3,871,906 4,042,416 4,056,588 4,193,908 2 % (6) %

Home equity loans & lines, net 1,097,168 1,136,064 1,172,697 1,189,428 1,249,152 (3) % (12)%

Consumer & other, net 205,746 217,358 318,929 354,385 384,639 (5) % (47)%

Total loans and leases, net of deferred fees and costs$22,160,860 $21,779,367 $22,426,473 $22,671,455 $21,251,478 2 % 4 %



(1) The Bank participates in the Payroll Protection Program to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include 18,135 PPP loans, totaling $2.0 billion, net of deferred fees and costs as of March 31, 2021.



Loan and leases mix:

Commercial real estate:

Non-owner occupied term, net 15 %16 %16 %16 %17 %

Owner occupied term, net 11 %11 %11 %11 %12 %

Multifamily, net 15 %15 %15 %15 %16 %

Construction & development, net 4 %4 %3 %3 %3 %

Residential development, net 1 %1 %1 %1 %1 %

Commercial:

Term, net 20 %18 %19 %19 %11 %

Lines of credit & other, net 4 %4 %4 %4 %5 %

Leases & equipment finance, net 6 %7 %7 %7 %7 %

Residential:

Mortgage, net 18 %18 %18 %18 %20 %

Home equity loans & lines, net 5 %5 %5 %5 %6 %

Consumer & other, net 1 %1 %1 %1 %2 %

Total 100 %100 %100 %100 %100 %

Umpqua Holdings Corporation

Deposits by Type/Core Deposits

(Unaudited)

Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 % Change

Seq. Year (Dollars in thousands) Amount Amount Amount Amount Amount Quarterover Year

Deposits:

Demand, non-interest bearing$10,500,482 $9,632,773 $9,475,244 $9,172,210 $7,169,907 9 % 46 %

Demand, interest bearing 3,244,624 3,051,487 2,931,990 2,813,722 2,482,908 6 % 31 %

Money market 7,554,798 7,173,920 7,160,838 7,262,777 7,082,011 5 % 7 %

Savings 2,109,211 1,912,752 1,848,639 1,730,051 1,486,909 10 % 42 %

Time 2,477,718 2,851,269 3,253,072 3,865,618 4,477,640 (13)% (45)%

Total $25,886,833 $24,622,201 $24,669,783 $24,844,378 $22,699,375 5 % 14 %



Total core deposits^ (1) $24,740,621 $23,298,561 $23,134,283 $22,934,059 $20,398,215 6 % 21 %



Deposit mix:

Demand, non-interest bearing41 %39 %38 %37 %32 %

Demand, interest bearing 12 %12 %12 %11 %11 %

Money market 29 %29 %29 %29 %31 %

Savings 8 %8 %8 %7 %7 %

Time 10 %12 %13 %16 %19 %

Total 100 %100 %100 %100 %100 %



Number of open accounts:

Demand, non-interest bearing422,792 420,050 423,658 423,456 416,270

Demand, interest bearing 72,156 72,811 73,812 74,813 75,514

Money market 58,409 58,609 59,083 59,445 59,203

Savings 161,432 160,192 162,234 161,710 159,870

Time 43,637 48,292 52,572 57,501 62,515

Total 758,426 759,954 771,359 776,925 773,372



Average balance per account:

Demand, non-interest bearing$24.8 $22.9 $22.4 $21.7 $17.2

Demand, interest bearing 45.0 41.9 39.7 37.6 32.9

Money market 129.3 122.4 121.2 122.2 119.6

Savings 13.1 11.9 11.4 10.7 9.3

Time 56.8 59.0 61.9 67.2 71.6

Total $34.1 $32.4 $32.0 $32.0 $29.4

^(1) Core deposits are defined as total deposits less time deposits greaterthan $250,000 and all brokered deposits.

Umpqua Holdings Corporation

Credit Quality - Non-performing Assets

(Unaudited)

Quarter Ended % Change

Seq. Year (Dollars in thousands) Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Quarterover Year

Non-performing assets:

Loans and leases on non-accrual status $29,216 $31,076 $26,425 $32,412 $39,128 (6) %(25)%

Loans and leases past due 90+ days and accruing^ (1) 25,612 36,361 50,269 39,818 47,185 (30) %(46)%

Total non-performing loans and leases 54,828 67,437 76,694 72,230 86,313 (19) %(36)%

Other real estate owned 1,405 1,810 2,369 2,578 3,020 (22) %(53)%

Total non-performing assets $56,233 $69,247 $79,063 $74,808 $89,333 (19) %(37)%



Performing restructured loans and leases $23,756 $14,991 $15,819 $15,032 $20,541 58 %16 %

Loans and leases past due 31-89 days $51,120 $72,047 $66,155 $40,583 $59,962 (29) %(15)%

Loans and leases past due 31-89 days to total loans and leases0.23 % 0.33 % 0.29 % 0.18 % 0.28 %

Non-performing loans and leases to total loans and leases ^(1)0.25 % 0.31 % 0.34 % 0.32 % 0.41 %

Non-performing assets to total assets^(1) 0.19 % 0.24 % 0.27 % 0.25 % 0.32 %

Excludes certain mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $20.0 million, $2.6 million, and $5.3 million at September 30, 2020, June 30,(1) 2020, and March 31, 2020, respectively. There were no non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so at March 31, 2021 and December 31, 2020.

Umpqua Holdings Corporation

Credit Quality - Allowance for Credit Losses

(Unaudited)

Quarter Ended % Change

Seq. Year (Dollars in thousands) Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Quarterover Year

Allowance for credit losses on loans and leases (ACLLL)

Balance, beginning of period $ 328,401 $ 345,049 $ 356,745 $ 291,420 $ 157,629 (5) % 108 %

Impact of adoption of CECL - - - - 49,999 nm nm

Adjusted balance, beginning of period 328,401 345,049 356,745 291,420 207,628 (5) % 58 %

Provision for credit losses on loans and leases 526 3,104 1,785 81,484 105,502 (83)% (100)%

Charge-offs (20,915) (23,942) (16,646) (19,453) (24,455) (13)% (14) %

Recoveries 3,271 4,190 3,165 3,294 2,745 (22)% 19 %

Net charge-offs (17,644) (19,752) (13,481) (16,159) (21,710) (11)% (19) %

Balance, end of period $ 311,283 $ 328,401 $ 345,049 $ 356,745 $ 291,420 (5) % 7 %

Reserve for unfunded commitments

Balance, beginning of period $ 20,286 $ 24,306 $ 26,368 $ 20,927 $ 5,106 (17)% 297 %

Impact of adoption of CECL - - - - 3,238 nm nm

Adjusted balance, beginning of period 20,286 24,306 26,368 20,927 8,344 (17)% 143 %

(Recapture) provision for credit losses on unfunded commitments(526) (4,020) (2,062) 5,441 12,583 (87)% (104)%

Balance, end of period 19,760 20,286 24,306 26,368 20,927 (3) % (6) %

Total Allowance for credit losses (ACL) $ 331,043 $ 348,687 $ 369,355 $ 383,113 $ 312,347 (5) % 6 %



Net charge-offs to average loans and leases (annualized) 0.33 % 0.35 % 0.24 % 0.29 % 0.41 %

Recoveries to gross charge-offs 15.64 % 17.50 % 19.01 % 16.93 % 11.22 %

ACLLL to loans and leases 1.40 % 1.51 % 1.54 % 1.57 % 1.37 %

ACL to loans and leases 1.49 % 1.60 % 1.65 % 1.69 % 1.47 %

nm = not meaningful

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)

Quarter Ended % Change

Year Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Seq. Quarterover Year

Average Rates:

Yield on loans held for sale 2.75 % 3.19 % 3.13 % 3.77 % 4.20 % (0.44) (1.45)

Yield on loans and leases 4.02 % 4.24 % 3.96 % 4.11 % 4.58 % (0.22) (0.56)

Yield on taxable investments 1.86 % 1.77 % 1.56 % 1.38 % 2.50 % 0.09 (0.64)

Yield on tax-exempt investments ^(1) 3.03 % 3.08 % 3.11 % 3.17 % 3.14 % (0.05) (0.11)

Yield on interest bearing cash and temporary investments0.10 % 0.10 % 0.10 % 0.10 % 1.23 % - (1.13)

Total yield on earning assets ^(1) 3.41 % 3.64 % 3.45 % 3.59 % 4.19 % (0.23) (0.78)



Cost of interest bearing deposits 0.29 % 0.38 % 0.49 % 0.67 % 1.03 % (0.09) (0.74)

Cost of securities sold under agreements

to repurchase and fed funds purchased 0.08 % 0.09 % 0.09 % 0.21 % 0.47 % (0.01) (0.39)

Cost of borrowings 1.33 % 1.18 % 1.23 % 1.33 % 1.79 % 0.15 (0.46)

Cost of junior subordinated debentures 3.60 % 3.73 % 4.03 % 5.55 % 5.45 % (0.13) (1.85)

Total cost of interest bearing liabilities 0.38 % 0.49 % 0.59 % 0.78 % 1.15 % (0.11) (0.77)



Net interest spread ^(1) 3.03 % 3.15 % 2.85 % 2.81 % 3.04 % (0.12) (0.01)

Net interest margin ^(1) 3.18 % 3.35 % 3.08 % 3.09 % 3.41 % (0.17) (0.23)



Performance Ratios:

Return on average assets 1.49 % 2.04 % 1.68 % 0.73 % (25.82) % (0.55) 27.31

Return on average tangible assets 1.49 % 2.04 % 1.68 % 0.73 % (27.53) % (0.55) 29.02

Return on average common equity 16.33 % 22.92 % 19.48 % 8.46 % (174.94) % (6.59) 191.27

Return on average tangible common equity 16.43 % 23.07 % 19.62 % 8.53 % (301.30) % (6.64) 317.73

Efficiency ratio - Consolidated 56.74 % 58.82 % 54.52 % 55.40 % 756.29 % (2.08) (699.55)

Efficiency ratio - Bank 55.51 % 57.77 % 53.41 % 54.17 % 752.92 % (2.26) (697.41)

^(1) Tax exempt interest has been adjusted to a taxable equivalent basis usinga 21% tax rate.

Umpqua Holdings Corporation Average Balances

(Unaudited)

Quarter Ended % Change

Seq. Year (Dollars in thousands) Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Quarterover Year

Temporary investments and interest bearing cash$2,483,451$2,066,572$1,827,818$1,563,753$1,084,85420 % 129 %

Investment securities, taxable 2,945,896 2,850,550 2,797,547 2,777,154 2,760,461 3 % 7 %

Investment securities, tax-exempt 252,741 245,997 237,165 235,934 241,105 3 % 5 %

Loans held for sale 703,557 696,688 669,646 577,773 406,434 1 % 73 %

Loans and leases 21,692,639 22,138,283 22,560,076 22,428,142 21,196,989 (2) % 2 %

Total interest earning assets 28,078,284 27,998,090 28,092,252 27,582,756 25,689,843 0 % 9 %

Goodwill and other intangible assets, net 15,598 16,775 18,021 19,253 1,785,608 (7) % (99)%

Total assets 29,392,490 29,396,311 29,533,871 29,066,775 28,844,773 0 % 2 %



Non-interest bearing demand deposits 9,897,749 9,587,081 9,335,350 8,484,684 6,880,457 3 % 44 %

Interest bearing deposits 15,166,198 15,165,049 15,451,816 15,803,595 15,695,309 0 % (3) %

Total deposits 25,063,947 24,752,130 24,787,166 24,288,279 22,575,766 1 % 11 %

Interest bearing liabilities 16,444,694 16,822,808 17,205,775 17,625,888 17,301,712 (2) % (5) %



Shareholders' equity - common 2,674,871 2,615,676 2,549,703 2,514,754 4,257,711 2 % (37)%

Tangible common equity ^(1) 2,659,273 2,598,901 2,531,682 2,495,501 2,472,103 2 % 8 %



^(1) Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average common shareholders' equity less average goodwill and other intangible assets, net (excluding MSRs).

Umpqua Holdings Corporation Average Rates and Balances

(Unaudited)

Quarter Ended

March 31, 2021 December 31, 2020 March 31, 2020

Interest Average Interest Average Interest Average (Dollars in thousands) Average Income Yields orAverage Income Yields or RAverage Income Yields or Balance or Rates Balance or ates Balance or Rates Expense Expense Expense

INTEREST-EARNING ASSETS:

Loans held for sale $703,557 $4,845 2.75 % $696,688 $5,554 3.19 % $406,434 $4,264 4.20 %

Loans and leases (1) 21,692,639 216,296 4.02 % 22,138,283 235,261 4.24 % 21,196,989 241,729 4.58 %

Taxable securities 2,945,896 13,710 1.86 % 2,850,550 12,610 1.77 % 2,760,461 17,283 2.50 %

Non-taxable securities (2) 252,741 1,915 3.03 % 245,997 1,893 3.08 % 241,105 1,894 3.14 %

Temporary investments and interest-bearing cash 2,483,451 624 0.10 % 2,066,572 531 0.10 % 1,084,854 3,331 1.23 %

Total interest-earning assets 28,078,284 $237,3903.41 % 27,998,090 $255,8493.64 % 25,689,843 $268,5014.19 %

Other assets 1,314,206 1,398,221 3,154,930

Total assets $29,392,490 $29,396,311 $28,844,773

INTEREST-BEARING LIABILITIES:

Interest-bearing demand deposits $3,125,398 $414 0.05 % $3,014,292 $448 0.06 % $2,471,556 $3,543 0.58 %

Money market deposits 7,360,512 1,491 0.08 % 7,210,906 1,731 0.10 % 7,107,626 11,759 0.66 %

Savings deposits 1,998,927 163 0.03 % 1,882,866 183 0.04 % 1,485,171 241 0.07 %

Time deposits 2,681,361 8,610 1.30 % 3,056,985 12,205 1.59 % 4,630,956 24,747 2.15 %

Total interest-bearing deposits 15,166,198 10,678 0.29 % 15,165,049 14,567 0.38 % 15,695,309 40,290 1.03 %

Repurchase agreements and federal funds purchased395,946 76 0.08 % 388,361 93 0.09 % 337,796 395 0.47 %

Borrowings 539,077 1,772 1.33 % 934,006 2,765 1.18 % 906,624 4,046 1.79 %

Junior subordinated debentures 343,473 3,052 3.60 % 335,392 3,147 3.73 % 361,983 4,903 5.45 %

Total interest-bearing liabilities 16,444,694 $15,578 0.38 % 16,822,808 $20,572 0.49 % 17,301,712 $49,634 1.15 %

Non-interest-bearing deposits 9,897,749 9,587,081 6,880,457

Other liabilities 375,176 370,746 404,893

Total liabilities 26,717,619 26,780,635 24,587,062

Common equity 2,674,871 2,615,676 4,257,711

Total liabilities and shareholders' equity $29,392,490 $29,396,311 $28,844,773

NET INTEREST INCOME $221,812 $235,277 $218,867

NET INTEREST SPREAD 3.03 % 3.15 % 3.04 %

NET INTEREST INCOME TO EARNING 3.18 % 3.35 % 3.41 % ASSETS OR NET INTEREST MARGIN (1), (2)

(1) Non-accrual loans and leases are included in the average balance.

Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of(2) approximately $381,000 for the three months ended March 31, 2021, as compared to $370,000 for December 31, 2020 and $332,000 for March 31, 2020.

Umpqua Holdings Corporation Segments

(Unaudited)

Core Banking Quarter Ended % Change

Year (in thousands) Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Seq. Quarter over Year

Net interest income $217,574 $230,430 $212,215 $208,245 $216,106 (6) % 1 %

Provision (recapture) for credit losses - 29 (338) 87,085 118,085 (100) % (100)%

Non-interest income

(Loss) gain on sale of investment securities, net (702) (173) (112) 563 681 306 % (203)%

Gain (loss) on swap derivatives, net 11,750 3,955 1,765 (823) (14,306) 197 % (182)%

Non-interest income (excluding above items) 32,403 40,921 39,678 31,697 36,588 (21) % (11) %

Total non-interest income 43,451 44,703 41,331 31,437 22,963 (3) % 89 %

Non-interest expense

Goodwill Impairment - - - - 1,784,936 nm (100)%

Exit and disposal costs 1,200 725 792 548 524 66 % 129 %

Non-interest expense (excluding above items) 145,161 171,634 148,519 141,448 147,896 (15) % (2) %

Allocated expenses, net ^(1) (790) (3,565) (2,976) (1,963) (3,053) (78) % (74) %

Total non-interest expense 145,571 168,794 146,335 140,033 1,930,303 (14) % (92) %

Income (loss) before income taxes 115,454 106,310 107,549 12,564 (1,809,319) 9 % (106)%

Provision (benefit) for income taxes 28,106 (13,508) 20,988 (5,544) 33,445 (308) % (16) %

Net income (loss) $87,348 $119,818 $86,561 $18,108 $(1,842,764) (27) % (105)%



Effective Tax Rate 24 %(13) %20 %(44) %(2) %

Efficiency Ratio 56 %61 %58 %58 %807 %



Total assets $29,529,769 $28,438,813 $28,652,477 $28,942,285 $26,935,780 4 % 10 %

Loans held for sale $9,406 $111,670 $39,453 $40,694 $35,075 (92) % (73) %

Total loans and leases $22,160,860 $21,779,367 $22,426,473 $22,671,455 $21,251,478 2 % 4 %

Total deposits $25,425,339 $24,200,012 $24,102,498 $24,421,486 $22,333,553 5 % 14 %



Key Rates, end of period:

10 year CMT 1.74 %0.93 %0.69 %0.66 %0.70 %

FHLMC 30 year fixed 3.18 %2.67 %2.88 %3.13 %3.50 %

nm = not meaningful

^(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment.

Umpqua Holdings Corporation Segments - Continued

(Unaudited)

Mortgage Banking Quarter Ended % Change

Year (in thousands) Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Seq. Quarter over Year

Net interest income $3,857 $4,477 $4,359 $4,258 $2,429 (14) % 59 %

Provision for credit losses - - - - - nm nm

Non-interest income

Residential mortgage banking revenue:

Origination and sale 62,505 83,388 98,703 86,781 39,347 (25) % 59 %

Servicing 9,087 9,497 8,796 8,533 8,880 (4) % 2 %

Change in fair value of MSR asset:

Changes due to collection/realization of expected cash flows over time(4,545) (4,431) (4,878) (5,042) (5,329) 3 % (15) %

Changes due to valuation inputs or assumptions (2,014) (9,426) (12,244) (6,395) (25,358) (79) % (92) %

Non-interest income (excluding above items) 316 229 216 166 142 38 % 123 %

Total non-interest income 65,349 79,257 90,593 84,043 17,682 (18) % 270 %

Non-interest expense

Non-interest expense 41,231 38,953 40,896 39,914 29,302 6 % 41 %

Allocated expenses, net ^(1) 790 3,565 2,976 1,963 3,053 (78) % (74) %

Total non-interest expense 42,021 42,518 43,872 41,877 32,355 (1) % 30 %

Income (loss) before income taxes 27,185 41,216 51,080 46,424 (12,244) (34) % (322)%

Provision (benefit) for income taxes 6,796 10,304 12,770 11,606 (3,061) (34) % (322)%

Net income (loss) $20,389 $30,912 $38,310 $34,818 $(9,183) (34) % (322)%



Effective Tax Rate 25 %25 %25 %25 %25 %

Efficiency Ratio 61 %51 %46 %47 %161 %



Total assets 506,911 796,362 784,964 702,963 604,602 (36) % (16) %

Loans held for sale 367,075 654,555 644,507 564,705 446,466 (44) % (18) %

Total deposits 461,494 422,189 567,285 422,892 365,822 9 % 26 %



LHFS Production Statistics:

Closed loan volume for-sale 1,635,532 1,769,432 1,922,789 1,826,095 1,148,184 (8) % 42 %

Gain on sale margin 3.82 %4.71 %5.13 %4.75 %3.43 %

Direct LHFS expense 31,151 33,210 35,678 34,057 24,045 (6) % 30 %

Direct LHFS expenses as % of volume 1.90 %1.88 %1.86 %1.87 %2.09 %



MSR Statistics:

Residential mortgage loans serviced for others 13,030,467 13,026,720 12,964,361 12,746,125 12,533,045 0 % 4 %

MSR, net 100,413 92,907 93,248 96,356 94,346 8 % 6 %

MSR as % of serviced portfolio 0.77 %0.71 %0.72 %0.76 %0.75 %



Key Rates, end of period:

10 year CMT 1.74 %0.93 %0.69 %0.66 %0.70 %

FHLMC 30 year fixed 3.18 %2.67 %2.88 %3.13 %3.50 %

nm = not meaningful

^(1) Represents the internal charge of centrally provided support services andother corporate overhead to the Mortgage Banking segment.

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SOURCE Umpqua Holdings Corporation